Blue Ocean Strategy Wisdom: Six Paths Framework

Blue Ocean Strategy Wisdom: Six Paths Framework

What is the Six Paths Framework, and how can it be used to reconstruct market boundaries in order to break from competition and create Blue Oceans? As part of our ongoing series, Blue Ocean Strategy Wisdom, we turn to pages 47 – 48 of the book Blue Ocean Strategy (co-authored by Professor W. Chan Kim and Professor Renée Mauborgne), for the origin of the Six Paths Framework:

We found clear patterns for creating blue oceans. Specifically, we found six basic approaches to remaking market boundaries. We call this the six paths framework. These paths have general applicability across industry sectors, and they lead companies into the corridor of commercially viable blue ocean ideas. None of these paths requires special vision or foresight about the future. All are based on looking at familiar data from a new perspective.

These paths challenge the six fundamental assumptions underlying many companies’ strategies. These six assumptions, on which most companies hypnotically build their strategies, keep companies trapped competing in red oceans. Specifically, companies tend to do the following:

• Define their industry similarly and focus on being the best within it
• Look at their industries through the lens of generally accepted strategic groups (such as luxury automobiles, economy cars, and family vehicles), and strive to stand out in the strategic group they play in
• Focus on the same buyer group, be it the purchaser (as in the office equipment industry), the user (as in the clothing industry), or the influencer (as in the pharmaceutical industry)
• Define the scope of the products and services offered by their industry similarly
• Accept their industry’s functional or emotional orientation
• Focus on the same point in time—and often on current competitive threats—in formulating strategy

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2008/01/blue-ocean-st-4.html